If loan price is over low, the loan revenue cannot compensate loss by default and operation cost.

如果银行贷款定价过低，其贷款收入则不能抵补贷款违约所造成的损失和经营成本。

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If there is a bond that you expect to go into default (it might be a bond backed by a collection of mortgages), you can buy insurance against the resulting loss in the bond's value.

如果你预期一项债券(有可能是受一系列抵押资产支持的债券)将出现违约，你可以购买保险，以弥补债券价值的损失。

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Loans made under the PDCF were secured by collateral and discounted to protect the Fed from risk of loss should it have had to sell collateral in the event of a default.

通过一级交易商信贷便利发放的贷款，都有抵押品担保，并且进行了贴现，这样一来，万一发生违约，而美联储不得不卖出抵押品时，美联储可以避免承担损失风险。

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Credit-default swaps where protection against loss through default is sold by banks to investors, or vice versa are the keenest indicator of these companies' credit standings in the market.

ECONOMIST: Telecoms debt

All these initiatives will further boost loss-given default assumptions and have been cited by rating agencies in decisions to downgrade European bank debt.

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If things go south for U.S. steel, into a default situation, the loss on the equity is absorbed by the gains on the CDS, which would pay out the inverse of whatever creditors recover.

FORBES: Blue Mountain's Andrew Feldstein: Three Ways To Play A More Volatile Steel Industry